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Which of the following describes a primary responsibility for the internal audit activity in helping management maintain effective controls?
Which of the following describes a primary responsibility for the internal audit activity in helping management maintain effective controls?A . Promoting continuous evaluationB . Promoting continuous monitoringC . Promoting continuous improvementD . Promoting continuous reportingView AnswerAnswer: C
Which of the following conclusions confirms that the internal audit activity is in conformance with the Standards'?
An external assessment was performed as part of the organization's quality assurance and improvement program. Which of the following conclusions confirms that the internal audit activity is in conformance with the Standards'?A . The chief audit executive is well qualified and has responsibilities over operational areas that the internal audit...
Which of the following practices, applied by the chief audit executive {CAE), most likely indicates an effective continuing professional educational program for the internal audit activity?
Which of the following practices, applied by the chief audit executive {CAE), most likely indicates an effective continuing professional educational program for the internal audit activity?A . The CAE tasks internal auditors with coordinating assurance activities with other providers across the organization.B . The CAE encourages auditors to volunteer to...
With regard to the internal audit activity's quality assurance and improvement program, which of the following must be reported to the board?
With regard to the internal audit activity's quality assurance and improvement program, which of the following must be reported to the board?A . A statement of independence of the organization's internal auditors.B . Meeting minutes with the assessment team, if key risks were identified and discussed.C . Frequency of the...
Which of the following controls would be most useful to prevent an employee from using the organization's funds for inappropriate expenditures and falsifying financial records to conceal the fraud?
Which of the following controls would be most useful to prevent an employee from using the organization's funds for inappropriate expenditures and falsifying financial records to conceal the fraud?A . Segregating duties in the payroll processes.B . Confirming receipt of goods or services.C . Performing background checks on newly hired...
According to IIA guidance, which of the following is ultimately responsible for seeing that the internal control system of an organization’s social responsibility program is effective?
According to IIA guidance, which of the following is ultimately responsible for seeing that the internal control system of an organization’s social responsibility program is effective?A . Senior managementB . Internal audit activity.C . All employees.D . Board of directors.View AnswerAnswer: D
Which of the following statements best describes a functional difference between external auditors and internal auditors?
Which of the following statements best describes a functional difference between external auditors and internal auditors?A . Internal auditors evaluate past achievements to understand whether controls are operating effectively, and external auditors focus on the accuracy of financial reporting.B . Internal auditors provide assurance about the sufficiency of controls to...
Which of the following specifications in an internal audit charter is the most important factor in the internal audit activity’s independence?
Which of the following specifications in an internal audit charter is the most important factor in the internal audit activity’s independence?A . Description of internal audit activity's responsibilitiesB . Definition of internal auditingC . Statement of internal audit activity's authorityD . Description of internal audit activity's reporting structureView AnswerAnswer: D
This decision is primarily intended to mitigate which of the following risks?
Management decided to post the organization's newly established code of conduct on its website. This decision is primarily intended to mitigate which of the following risks?A . Accountability risk.B . Communication risk.C . Knowledge risk.D . Cultural risk.View AnswerAnswer: B
Which of the following situations is most likely to prompt the internal audit activity to disclose its nonconformance with the Standards?
Which of the following situations is most likely to prompt the internal audit activity to disclose its nonconformance with the Standards?A . One of the organization's senior internal auditors owns a side business, though to date, no sales have been made to this business.B . The annual internal audit plan...
